Whirlpool to layoff 5000 workers by end of 2009

by Tina Kells | October 28, 2008 at 10:32 am

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Whirlpool, North America's largest home appliance maker, has announced that it will cut back it's workforce due to reduced demand and higher material costs. Whirlpool will layoff 5000 workers by the end of 2009. The Whirlpool layoffs signal a growing trend in workforce reductions by companies that produce big ticket price consumer goods.

Whirlpool Corp. said Tuesday it will cut about 5,000 jobs by the end of 2009 because of the global credit crisis and its expectation for continued reduced demand in North America and Europe.

The nation's largest home appliance maker also reported that its earnings fell 7 percent during the third quarter on lower global unit volumes and higher material costs. Whirlpool lowered its earnings outlook for the year.

Shares of Whirlpool dropped 9.9 percent, or $4.96, to $45.05 in early trading.

"The global credit crisis has had a profound negative impact on what was already a weakening and very fragile global economy," Jeff M. Fettig, chairman and chief executive, said in a release. "Declining home values, rising unemployment and very low consumer confidence levels will likely prolong a negative demand environment at least through the middle of 2009."